China's government is now the largest player in the nation's stock market

251 views · Published 10 August 2015 · 2:13 · Indexed 25 September 2026

Channel: Real Thing TV · 2015 · News & Politics

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China's government is now the largest player in the nation's stock market.

Chinese regulators have rolled out an impressive arsenal of measures in recent months designed to prop up the nation’s stock market.

One of the most prominent to date, which received little attention compared to the crackdown on illegal activities by some market participants, is the role of the state directly intervening to underpin gains.

In other words, buying stocks.

Front-and-center of this campaign is the China Securities Finance corporation.

The CSF, a state-run body, has almost unmatched firepower to support China’s stock market according to a report from Bloomberg.



Bloomberg states that the CSF has the ability to purchase $483 billion worth of stocks, a figure that could be expanded to a mammoth $805 billion should the government deem in necessary.

While it is well-publicized that the state – through the CSF – is now directly purchasing stocks, very little information about what it’s buying has been disclosed to market participants.

Recent regulatory filings have provided some evidence as to what sectors, and particular stocks, the corporation is favoring.

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